WTO

What is WTO？StructureStructure Agreements&Agreements&

PrinciplesPrinciples

Details of trade Details of trade agreementsagreements

Goal&Goal&Functions,Functions,

BenefitsBenefits

What is the WTO?What is the WTO?

The World Trade Organization (WTO) is the only global interThe World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nnational organization dealing with the rules of trade between nations. ations.

The World Trade Organization came into being in 1995. One The World Trade Organization came into being in 1995. One of the youngest of the international organizations, the WTO is of the youngest of the international organizations, the WTO is the successor to the General Agreement on Tariffs and Trade the successor to the General Agreement on Tariffs and Trade (GATT) established in the wake of the Second World War.(GATT) established in the wake of the Second World War.

FACT FILEFACT FILE

    LocationLocation: Geneva, Switzerland: Geneva, SwitzerlandEstablishedEstablished: 1 January 1995: 1 January 1995Created byCreated by: Uruguay Round negotiations : Uruguay Round negotiations (1986-94)   (1986-94)   MembershipMembership: 149 countries(on11 Decem: 149 countries(on11 December 2005)ber 2005)BudgetBudget: 175 million Swiss francs for 2006: 175 million Swiss francs for 2006Secretariat staffSecretariat staff: 635: 635HeadHead: Pascal Lamy (Director-General) : Pascal Lamy (Director-General)

StructureStructure

WTOMinisterial Conference

General Council

Goods Council

Intellectual Property (TRIPS) Council

Services Council

specialized committees

working parties

working groups

The goalThe goal

help producers of goods and services, help producers of goods and services, exporters, and importers conduct their exporters, and importers conduct their businessbusiness

improve the welfare of the peoples of the improve the welfare of the peoples of the member countriesmember countries

Functions:Functions:

The WTO’s objective is to help trade flow The WTO’s objective is to help trade flow smoothly, freely, fairly and predictablysmoothly, freely, fairly and predictably • Ad • Administering WTO trade agreementsministering WTO trade agreements• Forum for trade negotiations• Forum for trade negotiations• Handling trade disputes• Handling trade disputes• Monitoring national trade policies• Monitoring national trade policies• Technical assistance and training for • Technical assistance and training for developing countries developing countries• Cooperation with other international orga• Cooperation with other international organizations nizations 

10 benefits of the WTO trading 10 benefits of the WTO trading systemsystem

1. 1. The system helps promote peaceThe system helps promote peace2. 2. Disputes are handled constructivelyDisputes are handled constructively3. 3. Rules make life easier for allRules make life easier for all4. 4. Freer trade cuts the costs of livingFreer trade cuts the costs of living5. 5. It provides more choice of products and qualitiesIt provides more choice of products and qualities6. 6. Trade raises incomesTrade raises incomes7. 7. Trade stimulates economic growthTrade stimulates economic growth8. The basic principles make life more efficient8. The basic principles make life more efficient9. Governments are shielded from lobbying9. Governments are shielded from lobbying10. The system encourages good government10. The system encourages good government

The WTO agreementsThe WTO agreements

The WTO agreements are its heart, negotiaThe WTO agreements are its heart, negotiated and signed by the bulk of the world’s trading ted and signed by the bulk of the world’s trading nations and ratified in their parliaments.nations and ratified in their parliaments.

The WTO’s agreements are the result of negThe WTO’s agreements are the result of negotiations between the members. otiations between the members.

The current set were the outcome of the 198The current set were the outcome of the 1986–94 Uruguay Round negotiations which include6–94 Uruguay Round negotiations which included a major revision of the original General Agreed a major revision of the original General Agreement on Tariffs and Trade (GATT). ment on Tariffs and Trade (GATT).

The complete set runs to some 30,000 paThe complete set runs to some 30,000 pages consisting of about 30 agreements anges consisting of about 30 agreements and separate commitments (called scheduled separate commitments (called schedules) made by individual members in specific s) made by individual members in specific areas such as lower customs duty rates anareas such as lower customs duty rates and services market-opening.d services market-opening.

Principles of the trading systemPrinciples of the trading system

Trade without discrimination Trade without discrimination 1. Most-favoured-nation (MFN): treating other people equally1. Most-favoured-nation (MFN): treating other people equally              2. National treatment 2. National treatment ：： Treatingforeigners and locals equallyTreatingforeigners and locals equally      

  Freer trade: gradually, through negotiation Freer trade: gradually, through negotiation Predictability: through binding and transpaPredictability: through binding and transpa

rency rency Promoting fair competition Promoting fair competition Encouraging development and economic rEncouraging development and economic r

eform eform

Annual publicationsAnnual publications

The WTO publishes three annual publications: The WTO publishes three annual publications: WTO Annual ReportWTO Annual Report

The organization's annual report to its members and the public oThe organization's annual report to its members and the public on institutional matters, including descriptions of its main activities n institutional matters, including descriptions of its main activities and information on its budget and staff.   and information on its budget and staff.  

World Trade ReportWorld Trade ReportThe main WTO research publication on global trade policy, with The main WTO research publication on global trade policy, with special topics, analysis, and new developments. special topics, analysis, and new developments.    

International Trade StatisticsInternational Trade StatisticsThe WTO's annual compilation of global trade statistics. The WTO's annual compilation of global trade statistics.

Trade Agreements Of Trade Agreements Of WTOWTO

GoodsGoods::

The General Agreement on Tariffs and Trade ( GATT)The General Agreement on Tariffs and Trade ( GATT)

Services:Services:

General Agreement on Trade in Services(GATS)General Agreement on Trade in Services(GATS)

Intellectual PropertyIntellectual Property::

Trade-Related Aspects of Intellectual Property RightsTrade-Related Aspects of Intellectual Property Rights(TRIPS)(TRIPS)

Contribution of WTOContribution of WTO

Promote the International trade and economy

Tariffs Cuts

Principle: Most-Favoured-NationPrinciple: Most-Favoured-Nation

A B C D E

WTOA B

Trade

Agreement

C D EShare

equally

Promise of MembersPromise of Members

The government of membership make The government of membership make their trade policies transparent by following their trade policies transparent by following the laws of WTO.the laws of WTO.

The transparency of institutions is an The transparency of institutions is an important guarantee which makes the important guarantee which makes the WTO works well.WTO works well.

membership WTO

lower tariffs

more trade business and more profits

Less economic independence and protection

More competitions and responsibilities

Sum-up

Entering the WTO: Entering the WTO: opportunities and threatsopportunities and threats

Example:

The Influence of China’s Accession to WTO on the Banking Sector

opportunities threats Banks come into the Banks come into the

international trackinternational track Competitive mechanisms Competitive mechanisms

will be brought to Chinawill be brought to China More potential customers More potential customers

for banks in China while for banks in China while the market openthe market open

Banking sector in China Banking sector in China has equal chance to enter has equal chance to enter the foreign marketthe foreign market

Banks inBanks in China may lose China may lose high-class customershigh-class customers

Losing excellent Losing excellent management staffmanagement staff

Facing the increased Facing the increased competition which is competition which is disadvantage for themdisadvantage for them

The supervision capability The supervision capability of Central Bank will be of Central Bank will be challengedchallenged

Membership :unfairMembership :unfairFact

Summarize Summarize

WTOWTO is a is a organizationorganization!!

WTOWTO depends on depends on agreementsagreements!!

WTOWTO is a entity filled with different is a entity filled with different relationshipsrelationships!!

Members VS WTO Member A VS Member BMembers VS WTO Member A VS Member B

GoalFunctionsBenefitsStructure

Members